Is there a way to use the tax credit of 7500 as a down pay?ment ?

Question

i am thinking about purchasing a home. I file as head of household. Do i still get the whole 7500 credit? Is there a program that let me use the 7500 part of my down payment?

Answer 1

Yes, you would get the whole credit as head of household.

Please note that the 7500 tax credit must be paid back by the taxpayer within 15 years or when the property is sold.  Please do not expect to use "anticipated" equity in your home to pay this -- it may not be there given the cyclical swings in the real estate market.  

There is not a program yet that allows you to use the tax credit as part of the down payment since the FHA (Federal Housing Authority) will not back seller-assisted mortgages that do this.